The inductor market was valued at US$5.110 billion in 2019 and is projected to expand at a CAGR of 4.27% over the forecast period to reach US$6.567 billion by 2025. An inductor which is also called a coil, reactor or chokes is a two-terminal electric component that stores energy in the magnetic field when electric current flows through it. Growing demand for consumer electronics such as smartphones, tablets, laptops, set-top boxes, portable gaming consoles, and others is the major factor driving the demand for various inductors worldwide. The growth of the global inductor market is also fuelled by escalating demand for inductors from telecommunication, industrial, automotive, and defense sectors. With the increasing disposable income, the expenditure on consumer electronics also increases especially in developing countries like India, China, and Brazil which boosts the demand for inductors. In fact, according to The World Bank, final consumption expenditure in China has increased from US$2.939 in 2010 trillion to US$7.26 trillion in 2018. Also, according to Japan Electronics and Information Technology Industries Association, global production by the electronics and IT industries expanded at a good rate of approx. 4% during the period 2015 to 2018. However, fluctuating in the prices of raw materials is expected to restrain the growth of the market during the forecast period.
The growing use of inductors in the automotive industry
The growing adoption of inductors in automotive electronics parts is expected to be one of the prime drivers for the growth of the market. As today, the market is transitioning from an age of people driving cars to an age of self-driven or autonomous driving capability, resulting in an increase in the number of electronic parts used in cars which further increases the demand for the inductor. High frequency power inductors for automotive application are specifically designed for reliability to reduce failure risks. Increasing the production of automotive vehicles in various parts of the world is also expected to boost the demand for inductors in the coming years. For instance, according to the International Organization of Motor Vehicle Manufacturers, vehicle production in China has increased from 19,271,808 units in 2012 to 27,809,196 units in 2018.
The aerospace industry is growing at a substantial rate over the forecast period
Over recent years, automation has come to take on a critical role in a number of industries. The aerospace industry is one such sector that is increasingly using automated devices to address a number of tasks such as aircraft maintenance procedures, conducting experiments in outer space, surveillance, intelligence gathering, and terrain mapping in defense. These technologically advanced devices use components like sensors, filters, motors and transformers which rely highly on inductors. Increasing demand for the high-performance interface, increased security, and heavy processing requirement is boosting the automated products demands and with emerging industrial Internet of Things (IIoT) in this sector; the aerospace manufacturers are steadily upgrading their factories resulting to propelling the market growth opportunities for inductors and manufactures in the coming years.
The Asia Pacific is witnessing exponential growth during the forecast period
Geographically, Asia Pacific will witness substantial market growth opportunities owing to booming automotive as well as the consumer electronics industry in countries like China and India. This regional market growth is majorly supported by the presence of major market players which are investing heavily in expansion facilities. Simultaneously, the various government policies for the investment in the development of consumer electronics and other industries will also have a significant impact on the semiconductor components market in this region which will further boost the demand for inductor during the forecast period. For instance, the government of India recently reduces corporate tax aiming to attract foreign investment and boosting its manufacturing sector.
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